European Union (EU) Prepares Countermeasures: Today, 21 July, it was reported that the EU is exploring a broader set of possible countermeasures against the United States as prospects for an acceptable trade agreement with Washington fade. EU members are considering using wide-ranging “anti-coercion” measures which could let the bloc target U.S. services and other sectors in absence of a deal. Last week, the EU’s trade minister, Maroš Šefčovič, said that the new U.S. tariffs on the EU was “absolutely unacceptable” and that the EU is looking to release a new set of countermeasures in response to this new tariff increase. No formal updated list has been released from the EU, and there is no timeline for when countermeasures will be finalized.
Trade Agreements:
Vietnam: On Thursday, 17 July, it was reported that Vietnam and the United States are still working on finalizing terms of the trade agreement originally announced 2 July.
Indonesia: Last Tuesday, 15 July, President Trump truthed that the United States has entered into a trade agreement with Indonesia. Details of the agreement are forthcoming, but news reporting indicates that the United States will impose a 19% reciprocal tariff on imports from Indonesia and products of U.S. origin imported into Indonesia will be duty free. On 18 July, it was reported that Indonesia is still negotiating details of the trade deal and is pursuing exemptions for exports of nickel.
Negotiations: On Sunday, July 20, U.S. Commerce Secretary Howard Lutnick said in an interview that the Trump Administration will cut trade deals with key U.S. trading partners in the coming weeks before the higher tariffs become in effect 1 August. Lutnick went on to say that smaller countries will likely continue to face a baseline 10% reciprocal tariff and larger countries could potentially have higher tariffs. It continues to be unclear if the baseline rate will change after 1 August given that Lutnick’s comments do not aligned with comments made by President Trump during an interview indicating that the baseline rate may increase to 15-20%.
Updated tariff rates from letters sent by President Trump: As of 5 PM on 21 July, President Trump has not announced any additional letters to U.S. trading partners. Please find the latest on country tariffs below.
Please see below for the latest as reported by the press on trade negotiations between the United States and some countries seeking to reduce or avoid higher reciprocal tariffs on their goods.
Philippines: Today, 21 July, it was reported that Philippine President Ferdinand Marcos Jr. will be meeting with President Trump this week to secure a more favorable trade deal before the 1 August deadline.
Brazil: Today, 21 July, it was reported that Brazil’s Finance Minister Fernando Haddad said that Brazil would not give up negotiating with the US but acknowledged that a trade deal may not be reached by 1 August.
Taiwan: Today, 21 July, Taiwan said more trade talks with the US will be held this week.
China: On Friday, 18 July, China’s Commerce Minister Wang Wentao said that China wants to bring its trade ties with the United States back to stable footing.
Japan: On 18 July, U.S. Treasury Secretary Scott Bessent said that a mutually beneficial trade agreement is still possible with Japan.
Thailand: On Friday, 18 July, Thailand said that they expect to receive tariff rates from the United States by 1 August that are close to those imposed on other countries in the region.
India: On Thursday, 17 July, it was reported that the India and the US are “ironing out issues” in hopes of reaching a trade agreement.
Legal Actions Against President Trump’s Tariffs: On Thursday, 17 July, it was reported that the Court of International Trade is considering whether to resume at least one of the International Economic Emergency Powers Act tariff challenges it froze last month amid ongoing appeals in parallel suits after the plaintiffs and Justice Department clashed over whether the stay is streamlining the overall litigation or unnecessarily limiting it. If CIT chooses to lift its stay on the case, known as Emily Ley Paper, et al., v. Trump, it would open a path for the small-business plaintiffs to join what is already a crowded appellate docket, where judges are weighing both whether Trump’s novel IEEPA tariffs are legal and which courts have jurisdiction over suits involving them.
Canada Announces New Measures on Steel Imports: On Wednesday, 16 July, Canadian Prime Minister Mark Carney announced that Canada is modifying tariff rate quotas (TRQs) for steel products as a result of the US Section 232 tariffs on steel and to prevent the Canadian market from being flooded with cheaper foreign steel no longer destined for the United States. This may be of interest to PMMI members manufacturing in Canada and sourcing non-Canadian steel.
On Friday, 18 July, China’s Commerce Ministry called on Canada to correct the “wrong practice” of restrictions on steel imports. That same day, China’s Embassy in Ottawa criticized the duties and said that Canada is violating World Trade Organization rules and disrupted global trade order.
The United Kingdom Seeks Exemptions on Steel Imported from European Countries: On Thursday, 17 July, it was reported that UK officials are optimistic that the Trump Administration will agree to modify the domestic-production requirements that are holding up a trade agreement to lower U.S. tariffs on steel. The UK asked for steel imported from European countries that are then manufactured into products in the UK qualify as British for the purpose of U.S. tariffs. Both sides are open to this exemption if steel from other countries that are seen by President Trump as strategic rivals are not covered under the UK deal.
Canada and Mexico to Strengthen Trade Collaboration: On Thursday, 16 July, Mexico’s President Claudia Sheinbaum said she spoke with Canadian Prime Minister Mark Carney and that the two had agreed to strengthen trade collaboration, particularly in light of the tariffs from U.S. President Donald Trump set to go in effect on 1 August.
India and the United Kingdom (UK) to Finalize Trade Agreement: On Friday, 18 July, it was reported that India’s Prime Minister Narendra Modi will be visiting the UK this week to sign a trade deal. The trade deal reduces tariffs on vehicles and other goods and is expected to enter into force in a year. As details of the trade agreement are not publicly available, it is unclear how PMMI members may be impacted.
